Critical Analysis: IQVIA (NYSE:IQV) vs. Inotiv (NASDAQ:NOTV)

Inotiv (NASDAQ:NOTV) and IQVIA (NYSE:IQV) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Risk and Volatility

Inotiv has a beta of 2.09, suggesting that its share price is 109% more volatile than the S&P 500. Comparatively, IQVIA has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500.

Institutional and Insider Ownership

43.0% of Inotiv shares are owned by institutional investors. Comparatively, 87.0% of IQVIA shares are owned by institutional investors. 11.5% of Inotiv shares are owned by company insiders. Comparatively, 1.1% of IQVIA shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Inotiv and IQVIA, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Inotiv 0 0 2 0 3.00
IQVIA 0 1 15 0 2.94

Inotiv presently has a consensus price target of $40.50, suggesting a potential upside of 10.02%. IQVIA has a consensus price target of $262.18, suggesting a potential upside of 3.56%. Given Inotiv’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Inotiv is more favorable than IQVIA.

Profitability

This table compares Inotiv and IQVIA’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Inotiv -6.83% -14.51% -4.46%
IQVIA 4.69% 23.95% 6.03%

Valuation & Earnings

This table compares Inotiv and IQVIA’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Inotiv $60.47 million 9.69 -$4.68 million ($0.35) -105.17
IQVIA $11.36 billion 4.27 $279.00 million $6.03 41.99

IQVIA has higher revenue and earnings than Inotiv. Inotiv is trading at a lower price-to-earnings ratio than IQVIA, indicating that it is currently the more affordable of the two stocks.

Summary

IQVIA beats Inotiv on 9 of the 14 factors compared between the two stocks.

Inotiv Company Profile

Inotiv, Inc. operates as a pharmaceutical development company, which engages in the provision of drug discovery, development services, and analytical instruments. The firm operates through the following business segments: Contract Research Services and Research Products. The Contract Research Services segment provides screening and pharmacological testing, preclinical safety testing, formulation development, regulatory compliance, and quality control testing. The Research Products segment designs, develops, manufactures, and markets vivo sampling systems and accessories, physiology monitoring tools, liquid chromatography, and electrochemistry instruments platforms. The company was founded by Peter T. Kissinger in 1974 and is headquartered in West Lafayette, IN.

IQVIA Company Profile

IQVIA Holdings, Inc. engages in the provision of analytics, technology solutions, and clinical research services to the life sciences industry. It operates through the following segments: Technology & Analytics Solutions, Research & Development Solutions and Contract Sales & Medical Solutions. Technology & Analytics Solutions segment provides mission critical information, technology solutions and real world solutions and services to the firm’s life science clients. Research & Development Solutions segment, which primarily serves biopharmaceutical customers, provides outsourced clinical research and clinical trial related services. Contract Sales & Medical Solutions segment provides health care provider and patient engagement services to both biopharmaceutical customers and the broader healthcare market. The company was founded by Dennis B. Gillings and Gary Koch in 1982 and is headquartered in Durham, NC.

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